The Bosnian Serb Republic government said on Saturday it would offer for sale its 80 percent stake in the country's number two telecoms operator, Telekom Srpske, by June 20 at an international tender.
Transport and Communications Minister Nedeljko Cubrilovic told a news conference the decision was made after the region's pension and restitution funds agreed to sell their 10 and 5 percent stakes respectively.
The Serb Republic government itself holds a 65 percent stake in Telekom Srpske and investment funds and small shareholders the remainder. Potential buyers should have 2005 revenue of at least 500 million euros ($640.6 million) and no fewer than 800,000 fixed-line and 1.5 million mobile subscribers, the government earlier said.
Cubrilovic said that Austria's Raiffeisen Investment, the adviser for the telecom sell-off, estimated its assets at 350 million euros.
The region's Prime Minister Milorad Dodik has said the government would not accept bids for the firm of less than 400 million euros in what would be Bosnia's biggest single privatisation and largest foreign direct investment deal.
"The message to all potential buyers is that they should not waste their time or money for the tender if they intend to offer a lower price," Cubrilovic said.
He added five to seven major telecom operators, including Telekom Austria and Telekom Srbija, have already expressed interest for Telekom Srpske whose sell-off plan has to be first approved by the Serb Republic parliament.
Telekom Srpske controls a 35 percent market share in both fixed and mobile telephony in a country of close to 4 million people. It had 2005 revenues of 346.3 million Bosnian marka ($228.3 million) and net profit of 80.8 million marka. Cubrilovic expressed a hope the deal would be closed by the end of this year.